Mumbai: Indian stock markets started Wednesday’s session on a weaker footing as rising crude oil prices and renewed geopolitical concerns prompted investors to turn cautious.
The benchmark BSE Sensex slipped 166.19 points to 77,070.93 in early trading, while the NSE Nifty 50 declined 59 points to 24,096.75.
Selling pressure was visible across several major Sensex constituents. Tata Steel, Larsen & Toubro, Bajaj Finance, Bharat Electronics, Power Grid and Mahindra & Mahindra featured among the notable decliners. On the other hand, HCL Technologies, Infosys, Eternal, Sun Pharmaceutical Industries and Kotak Mahindra Bank traded in positive territory.
Oil prices remained a key concern for investors. Brent crude, the international benchmark, rose 0.67% to $91.63 a barrel, adding to worries over inflation and corporate costs, particularly for oil-importing economies such as India.
Market sentiment has also been affected by uncertainty surrounding the Middle East. The lack of a significant diplomatic development following the end of a temporary 60-day US-Iran ceasefire has raised fears that disruptions to energy supplies could persist.
“The expiry of the temporary 60-day US-Iran ceasefire without any meaningful diplomatic breakthrough has renewed concerns over a prolonged disruption to energy supplies,” said Ponmudi R, CEO of Enrich Money. He added that higher crude prices, together with rising long-term US Treasury yields, had contributed to a broader risk-off environment in global markets.
Asian equities were largely under pressure during the session. South Korea’s Kospi dropped 5.59%, while Japan’s Nikkei 225 and Shanghai’s SSE Composite also traded lower. Hong Kong’s Hang Seng, however, managed to remain marginally higher. US markets also finished Tuesday’s session in the red.
According to VK Vijayakumar, Chief Investment Strategist at Geojit Investments, the recent weakness in Indian equities has largely been linked to two developments: higher crude prices and rising global bond yields. He noted that uncertainty surrounding the Middle East conflict continues to influence oil markets.
Despite the cautious mood, foreign institutional investors remained net buyers on Tuesday, purchasing Indian equities worth Rs 1,651.53 crore, exchange data showed.
The latest decline follows another weak session on Tuesday. The Sensex fell 492.70 points, or 0.63%, to close at 77,235.46, marking its third consecutive day of losses. The Nifty dropped 132.75 points, or 0.55%, to finish at 24,154.90, extending its losing streak to six sessions.
With crude prices climbing and global yields remaining elevated, investors are likely to keep a close watch on developments in international energy markets and geopolitical tensions as trading progresses.
